17 February 2023
6 Employer Benefits Of An EV Salary Sacrifice Scheme
Quite rightly, a salary sacrifice car scheme is promoted first and foremost as an employee benefit, and at Pink Salary Exchange we have used industry experts in car leasing, taxation, insurance and finance models to design a ground-breaking scheme which benefits employees in a number of different ways. However, this specialist expertise has also resulted in innovative features which benefit the employer too.
The flexible lease terms offered by Pink Salary Exchange mean the fleet manager has an easier job managing contract lengths for the company’s fleet, and the simple sign-up and online management system means the scheme pretty much runs itself, with minimal employer intervention. But there are several more tangible employer benefits also:
Lower national insurance contributions
Low and zero-emission vehicles taken through a salary sacrifice scheme qualify under Government rules for the salary reduction to be taken from gross salary. This benefits the employee in that the income tax and national insurance they pay is reduced. As a result of the salary reduction, the Class 1 national insurance payments the employer makes for each employee are also reduced. This will improve the general cash flow of the business.
Lower CO2 emissions
Every business needs to commit to lowering its carbon emissions in order to play its part in protecting the environment and reducing the effects of climate change. Encouraging employees to drive low and zero-emission electric vehicles (EVs) and transitioning your fleet to EVs will do this, as well as reducing your fuel costs and service & maintenance costs. If your business is committed to external environmental management standards such as ISO14001, for example, this scheme will help with your objectives to maintain that certification also.
Employee retention and productivity
A big feature of a salary sacrifice car scheme is that it is open to everybody across the business, whereas traditional company cars have historically been viewed as an elite perk for executive-level employees. This is therefore a great way for the business to promote inclusivity and fairness, which in turn will improve employee loyalty and motivation. If this results in productivity improvements, it may also enable the business to attract and retain the top available talent on the employment market, and establish a reputation as a fair and attractive employer.
Compliance and safety
The salary sacrifice car scheme offered by Pink Salary Exchange enables a business to record and monitor all its vehicles on the central online management portal. This means you have instant and accessible records relating to tax, insurance, service & maintenance, MOTs and licencing of your vehicles and drivers. This makes compliance easier to manage which may lead to changes resulting in cost savings.
Car leasing is a cheaper way to run and manage a fleet of vehicles, because you are not paying for the ownership of a depreciating asset, you are only paying the portion of depreciation suffered by the leasing company over the period of the lease. This will be cheaper than any form of finance to purchase the same vehicle. This reduces your fleet costs at a stroke, but if you partner with Pink Salary Exchange you have access to multi-bid leasing and maintenance partners to ensure that you get the best possible deals on the market. This comes from vast experience in the leasing market and long-established partnerships with the best vehicle manufacturers and maintenance providers.
Vehicles which are not company-owned but are used on company business, can be difficult to manage, which can lead to costs, accidents and compliance issues. Managing your grey fleet through a salary sacrifice car scheme gives the business complete visibility of these vehicles and means you are better able to analyse their performance and control their usage.
Contact Pink Salary Exchange for the best salary sacrifice car scheme on the market
Our industry-leading salary sacrifice car scheme is easy to set-up and maintain for your business, and will deliver all these employer benefits as well as savings cost for the employee and providing them with brand new vehicles on a financial basis which suits them. If it all sounds too good to be true, then contact Pink Salary Exchange today and we can explain exactly how it works and can get you set-up and enrolling employees in no time at all.